I have heard this phrase before "The 80/20 rule states that 80% of outputs are the result of 20% of inputs" but I could not grasp it entirely.
My problem is, how do I determine the 20% input that ...
The Italian economist Vilfredo Parreto was the first to realize that in most cases the world is not linear. 20% of all criminals create 80% of all the problems. 20% of your products bring 80% of your profit. 20% of your investments bring you 80% of the profit. 20% of one efforts provide 80% of one results. I hope it is clear by now. Next step is to be smart and sensetive and find out what are those 20% of your input that provide you with 80% of your business output. No one is able to do it wiithout knowing the details. You'll have to do it by yourself (or hire someone who ill do it for you). I can do it for you !. P.S - Vilfredo Pareto lived 1848 - 1923. He was a very smart man !. His footprints are in many fields up till today (e.g: A Pareto analysis). Google and I am sure you'll find much more. I have several books about him.
I think that would take a lot of statistical analysis to find out. I have to keep tab of every sale to be able to identify the 20% that gives me the 80%, right?